Creating companies and branches

I am new user of ERPNext, we have a parent company and one sub company which have 4 sub branches, all sales and revenues managed at Parent company and sub company and its branches only do operational work and managing their expenses and receive payments against those from parent company.
We also want to track expenses and workings in all sub company and its branches so what is best way to create in ERP Next, can i create 2 companies and 2nd company will have 4 brnaches.

Will be thankful for your help in this regard.

Can i create 2 companies and 2nd company will have 4 branches.

Yes. In ERPNext, Company master has flat structure. It doesn’t allow defining relationship of one company with another.

In the sub-company, you should define Parent Company as a party (like investor, customer, supplier etc.). You can add each branch as a Warehouse. Also, you can restrict user permissions based on Warehouse/Branch. In the HR module, you can Branches and categorize employees accordingly.

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You can also use cost center as branch.

Thanks for your replies.

What is the difference between Branches and Cost center in ERP Next?

I second this question. I am trying to set up one company with 2 retail outlets that should house their own inventory and keep sales separate from each other.

I’m reading post that say create one warehouse and cost center for each store location but then I’m confused on what a “branch” actually is and when to use it. Can anyone clarify this?


Yes, Same issue here.

The documentation is also very limited in this regard.